What are the key differences between using a deerskin as money and using a dollar bill as money?

a. Using a deerskin as money incurs a much larger transactions cost because it is bigger and heavier than paper money.

b. Using a deerskin as money may not be as widely accepted as using paper money.

c. Using a deerskin as money cannot fulfill the key functions of money: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.

d. A and b only.

e. All of the above?

Question

Business

Aliyah Kelley

11 September, 11:08

What are the key differences between using a deerskin as money and using a dollar bill as money?

a. Using a deerskin as money incurs a much larger transactions cost because it is bigger and heavier than paper money.

b. Using a deerskin as money may not be as widely accepted as using paper money.

c. Using a deerskin as money cannot fulfill the key functions of money: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.

d. A and b only.

e. All of the above?

+2

Answers (1)

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Isaac Conrad · Answer 1

I guess the correct answers are A and B only

Using a deerskin as money may not be as widely accepted as using paper money.

Using a deerskin as money incurs a much larger transactions cost because it is bigger and heavier than paper money.

A paymеnt systеm is any systеm usеd tο sеttlе financial transactiοns thrοugh thе transfеr οf mοnеtary valuе, and includеs thе institutiοns, instrumеnts, pеοplе, rulеs, prοcеdurеs, standards, and tеchnοlοgiеs that makе such an еxchangе pοssiblе.